Leases

3 Months Ended

Mar. 31, 2023

Note 15. Leases

Operating Leases

The Company leases certain real estate for its primary facilities under operating leases that expire at various dates between one and five years. These leases contain renewal options, and require the Company to pay operating costs, including property taxes, insurance, and maintenance. The terms of these lease agreements include free rent periods and annual rent increases. Operating lease expense is recognized on a straight-line basis over the term of the lease. There were no finance lease obligations as of March 31, 2023.

Right-of-use (ROU) assets are included in Other assets and operating lease liabilities are included in Other liabilities.


(dollar amounts in thousands)	March 31, 2023			December 31, 2022
ROU assets	$	2,356		$	2,789
Operating lease liabilities		2,709			3,149
Weighted-average remaining lease terms	1.99 years			2.12 years
Weighted-average discount rate		4.5	%		4.5	%

Supplemental cash flow information related to leases was as follows:


	Three Months Ended March 31,
(amounts in thousands)	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	610	$	659

Future minimum lease payments as of March 31, 2023 were as follows (in thousands):


Years Ending December 31,
2023 (remaining nine months)	$	1,398
2024		884
2025		454
2026		61
2027		—
Thereafter		—
Total undiscounted lease payments	$	2,797
Less - present value discount		88
Lease Liability, at present value	$	2,709

Future minimum lease payments as of December 31, 2022 were as follows (in thousands):


Years Ending December 31,
2023	$	1,910
2024		879
2025		449
2026		60
2027		—
Thereafter		—
Total undiscounted lease payments	$	3,298
Less - present value discount		149
Lease liability, at present value	$	3,149

The components of operating lease expense during the three months ended March 31, 2023 and 2022 were as follows:


	Three Months Ended March 31,
(amounts in thousands)	2023		2022
Operating lease expense	$	467	$	384
Short-term lease expense		66		122
Variable lease expense		51		54
Total operating lease expense	$	584	$	560